Shares of Frontdoor Inc (NASDAQ: FTDR), a leading home services provider, soared over 15% in pre-market trading on Monday following the company's exceptional third-quarter 2024 results and raised full-year guidance.

For the quarter ended September 30, Frontdoor delivered record revenue of $540 million, up 3% year-over-year, driven by a 4% increase in pricing. This exceeded analysts' expectations, while adjusted earnings per share of $1.38 significantly beat estimates, fueled by higher revenue and reduced contract claims costs.

The company's net income surged 40% to $100 million, and adjusted EBITDA jumped 29% to $165 million. Frontdoor's gross profit margin expanded an impressive 550 basis points to 57%, primarily due to higher realized prices, fewer service requests per customer, and process improvement initiatives.

Frontdoor raised its full-year 2024 revenue outlook to approximately $1.83 billion, representing a 3% increase. The company also increased its gross profit margin guidance to approximately 53% and its adjusted EBITDA outlook to around $430 million.

CEO Bill Cobb highlighted Frontdoor's "dramatic operational improvements" over the past two years, resulting in record financial performance. He emphasized the company's focus on accelerating long-term growth through aggressive actions to increase new home warranty sales and the acquisition of 2-10 Home Buyers Warranty, expected to close in the fourth quarter.